Delta Air Lines makes progress on its pension deficit
GE's nearly US$30b pension deficit, which is the largest of any major US corporation, has earned plenty of headlines in the past year. However, as a percentage of revenue or market cap, Delta Air Lines has faced an even bigger pension funding gap in recent years. As of the end of 2016, Delta had the second-worst funding ratio in the S&P 500 and a $10.6b pension deficit. It also had a $2.6b deficit in its other postretirement plans. Delta reduced its pension deficit significantly in 2017, though. Furthermore, rising interest rates could help it make additional progress in addressing its pension underfunding over the next 2 to 3 years. About a year ago, Delta decided to take advantage of low interest rates by issuing debt to accelerate its pension funding. This allowed it to make a big dent in its pension deficit during 2017. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-03-05/sky/delta-air-lines-makes-progress-on-its-pension-deficit
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Delta Air Lines makes progress on its pension deficit
GE's nearly US$30b pension deficit, which is the largest of any major US corporation, has earned plenty of headlines in the past year. However, as a percentage of revenue or market cap, Delta Air Lines has faced an even bigger pension funding gap in recent years. As of the end of 2016, Delta had the second-worst funding ratio in the S&P 500 and a $10.6b pension deficit. It also had a $2.6b deficit in its other postretirement plans. Delta reduced its pension deficit significantly in 2017, though. Furthermore, rising interest rates could help it make additional progress in addressing its pension underfunding over the next 2 to 3 years. About a year ago, Delta decided to take advantage of low interest rates by issuing debt to accelerate its pension funding. This allowed it to make a big dent in its pension deficit during 2017. <br/>
